Token Utility

Fees

United Protocolfee must be paid in UT tokens. This fee can either be paid directly in UT, or United Protocol will automatically swap the actual purchase currency (e.g. ETH) for UT on the open market. This means users do not need to explicitly hold UT tokens to be able to transact on the protocol. Note that there is no entitlement, allocation or rights to revenue of the United Protocol purely on the basis of ownership of UT tokens.

Token economy

The world-famous investor Warren Buffett once said:

"Life is like a snowball. The important thing is to find very wet snow and long hillsides. "

What are spiral dynamics?

Spiral Dynamics was proposed by American psychologist Clare W. Graves to explain the advancement of value systems in the evolution of human society and the growth of individual life.

Spiral Dynamics is a vital value ecosystem

United Protocol extends this theory to currency value management, consensus mechanisms, and business closed loops, creating a new generation of efficient and ever-moving value distribution and consensus building concept systems.

Based on Buffett's "snowball" theory, supplemented by spiral power economics, United Protocol launched the snowball mutual aid sharing economic model

Token name: UT

Total issuance:1,000,000,000

• Team – 15% (150 million UT): Allocated to United Protocol’s core team and founders as an incentive to drive long-term success.A multi-year vesting (see below) further ensures team members remain committed to the project’s development​.

Team: Team tokens are locked with a 12-month cliff (no UT released in the first year). After the 1-year cliff, team tokens vest gradually over the next 4 years on a monthly schedule (linear release). In practical terms, 25% of the team’s allocation vests at the end of year one, then roughly 2.08% of the team tokens unlock each month thereafter for 48 months, until 100% are unlocked by the end of year 4.

• Advisors – 5% (50 million UT): Reserved for project advisors and strategic partners who provide guidance and support. The relatively small percentage ensures advisors are rewarded while keeping the majority of tokens for the community and project growth.

Advisors: Advisor tokens have a shorter vesting period to reflect their advisory role while still preventing immediate sale. These tokens are locked with a 6-month cliff, then vest linearly over the following 18 months (1.5 years). Starting after month 6, approximately 5.56% of the advisor allocation unlocks each month until fully vested by end of month 24 (~2 years post-launch). This means advisors begin receiving tokens halfway through year one, with full distribution by the end of year two. The shorter schedule (compared to the team) is intentional since advisors typically contribute over a shorter horizon; however, a cliff and gradual release still ensure they continue to support the project instead of profiting instantly​.

• Community Incentives – 45% (450 million UT): The largest portion is dedicated to community rewards and incentives. These tokens will fund airdrops, staking and liquidity mining rewards, user growth campaigns, and other programs to foster adoption. Dedicating such a significant share to the community reflects best practices for decentralization – in recent crypto projects, community and ecosystem distributions often represent the largest allocation to broaden network ownership and encourage early usage​ .

Community Incentives: Community incentive tokens are not given out all at once; instead, they follow an emission schedule tied to network participation. There is no traditional “cliff” since these tokens are reserved for ongoing distribution (they are released as users earn them). United Protocol plans to distribute the 450 million community tokens over approximately 5 years through various programs. The emission model is designed to start higher in early years and taper off later, to jump-start network effects while preserving rewards for future users.Overall, this schedule guarantees a steady flow of rewards to the user base, aligning with the goal of broad token distribution.

• Ecosystem Development – 20% (200 million UT): Set aside to fund partnerships, developer grants, marketing, and ongoing product development in the United Protocol ecosystem. This chunk provides resources for continuous innovation and user acquisition. It falls within recommended ranges for ecosystem and marketing funds . By earmarking tokens for ecosystem development, United Protocol can foster dApp development, integrations, and other initiatives that enhance the UT token’s utility and drive long-term demand.

Ecosystem Development: Tokens earmarked for ecosystem growth (partnerships, development grants, marketing) are time-released over 4 years to ensure sustained funding.

• Treasury Reserves – 15% (150 million UT): Held in the treasury as a reserve for future unforeseen costs, network governance initiatives, and long-term sustainability.

Treasury Reserves: Treasury tokens are locked the longest, underscoring their role as a long-term reserve. The entire 15% treasury allocation is initially locked for 24 months (2 years) with no tokens released during this period.

Circulating Supply and Emission Curve

Given the above allocations and vesting schedules, the circulating supply of UT will increase gradually over a period of about five years. At genesis (TGE), only a small fraction of tokens are circulating (since team, advisor, and most investor tokens are locked). Thereafter, circulation grows as various cliffs are reached and tokens vest each month. The release pattern is designed to be as smooth as possible, roughly following a linear trajectory with slight inflection points when cliffs expire. This approach is chosen for its simplicity and predictability​– stakeholders can anticipate the token release schedule, and the market is less likely to be surprised by sudden unlock events.

Table 2: Projected Circulating Supply Over Time

Time	Circulating UT (approximate)	% of Total Supply
At Launch (TGE)	50 million	5%
End of Year 1 (12 mo)	190 million	~19%
End of Year 2 (24 mo)	487 million	~48.7%
End of Year 3 (36 mo)	680 million	~68%
End of Year 4 (48 mo)	800million	~80%
End of Year 5 (60 mo)	1,000 million	100%

Emission Curve Characteristics: The UT token release curve is intentionally smooth and gradual, avoiding sharp spikes. Early on, supply introduction is limited, which helps establish an orderly market and minimizes price volatility. As the project and demand for UT grow, the supply release ramps up (approximately forming an S-shaped cumulative curve), which ensures sufficient liquidity and distribution once the ecosystem is mature. This way, supply and demand can grow hand-in-hand. The schedule also aligns with project milestones – critical development and adoption phases coincide with incentive token availability (for example, more community rewards are available in early years when user growth is crucial). By the time most tokens are circulating, United Protocol is expected to have a broad user base and robust utility for UT, helping the market absorb the full supply.

For visual clarity, Figure 1 (below) illustrates the UT token release over time. The chart plots the circulating supply (y-axis) against time (x-axis), highlighting the cumulative unlock from each category. The curve starts nearly flat at TGE (very few tokens circulating), then rises steadily through years 1–3 as community and investor tokens release, and finally plateaus near the total supply by year 5 once team and reserve tokens finish vesting. This controlled emission curve instills confidence that the market will not be suddenly flooded. It reflects a well-calibrated tokenomics design where inflation is predictable and transparent, reinforcing investor and community trust in the United Protocol economy.

Figure 1 .the UT token release over time

Conclusion

The UT token distribution mechanism is crafted to support United Protocol’s long-term health. Through prudent allocation percentages and thoughtful vesting schedules, United Protocol achieves a fair launch, incentivizes its community, and safeguards against volatility. The circulating supply trajectory is engineered for sustainability – ensuring that as United Protocol grows, the increase in circulating UT is absorbed by genuine network usage. This aligns the interests of all stakeholders (founders, investors, and community) toward the protocol’s success. By following industry best practices in tokenomics, United Protocol’s UT token is well-positioned to foster a robust, engaged, and value-driven ecosystem for years to come.